Explanatory Memorandum
[Commentary: We have included only items here that may not be derived from the Council Directive and do not relate to a specific provision:]
[I]nformation on the tax provisions set out in this Directive should be made accessible through the Single Digital Gateway (‘SDG’) [Commentary: https://europa.eu/youreurope/index_en.htm]
A common framework for corporate taxation would necessarily feature an administration system, [i.e.] a centralised point of reference for dealing with a number of common issues, such as an Information Return for the entire group, and ensuring an adequate degree of coordination (...) amongst national tax administrations. At the same time, the administration system should fully respect national tax sovereignty as local tax returns, audits and dispute settlement (...).
Article 1 - Subject matter
1. This Directive lays down a common framework for corporate income taxation in the [EU] for certain groups.
2. [T]his Directive lays down rules:
(a) on delineating a group for the purposes of this Directive (‘BEFIT group’);
(b) for calculating an aggregated tax base for the companies and [PEs] of the BEFIT group (‘BEFIT group member’ and ‘BEFIT tax base’);
(c) for allocating the BEFIT tax base to eligible BEFIT group members;
(d) simplifying transfer pricing risk assessments for transactions with associated enterprises outside the group;
(e) for the administration of the common legal framework.
3. A company or a [PE] which is subject to this Directive shall cease to be subject to the national corporate tax (...).
Article 2 - Scope
[Commentary: the Explanatory Memorandum states: "When a group applies or chooses to apply the rules of this Directive, the framework will apply to the whole ‘BEFIT group’."]
1. This Directive applies to companies resident (...) in a Member State, including their [PEs] located in other Member States, and to [PEs of non-EU entities] located in Member States (...), which [meet] the following criteria:
(a) they belong to a domestic group or to a multinational enterprise group (‘MNE group') which prepares consolidated financial statements and had annual combined revenues of EUR 750 million or more in at least two of the last four fiscal years;
(b) in respect of companies, in addition:
(i) they take one of the forms listed in Annex I; [Commentary: This is a separate document.]
(ii) they are subject to one of the corporate taxes listed in Annex II, or to a similar tax subsequently introduced;
(iii) they are the [UPE] or [they are] consolidated (...) by the [UPE];
(c) in respect of [PEs], in addition:
(i) they are subject to one of the corporate taxes listed in Annex II or to a similar tax subsequently introduced;
(ii) they are a [PE] of the [UPE] or of an entity [that is] consolidated (...) by the [UPE].
2. [T]his Directive shall not apply to companies or [PEs] with an [UPE] outside the [EU] where the [group] revenues (...) in the [EU] do not exceed 5% of the total revenues (...) or the amount of EUR 50 million in at least two of the last four fiscal years. [Such companies and PEs do have the right to opt in] under paragraph 7.
3-6. [Special provisions for mergers, acquisitions, demergers and deviating fiscal years.]
7. Member States shall ensure that [companies and PEs meeting the above conditions] may choose to be covered by this Directive if they belong to an MNE group or domestic group which prepares consolidated financial statements but does not fulfil the (...) threshold of EUR 750 [million].
Article 3 - Definitions
(1) ‘group’ means:
(a) a collection of entities which are related (...) for the preparation of consolidated financial statements by the ultimate parent entity (...); or
(b) an entity that includes (...) one or more [PEs] in its financial statements (...);
(2) ‘domestic group’ means any group of which all entities are located in the same Member State;
(3) ‘MNE group’ means any multinational group that includes at least one entity or [PE] which is not located in the jurisdiction of the [UPE];
(4) ‘fiscal year’ (...)
(5) ‘consolidated financial statements’ (...);
(6) ‘entity’ means any legal arrangement that prepares separate financial accounts or any legal person;
(7) ‘[UPE]’ means:
(a) an entity that owns (...) a controlling interest in any other entity and that is not owned (...) by another entity with a controlling interest in it; or
(b) the head office of a group as defined in point (1)(b);
(8) ‘ownership interest’ means any equity interest that carries rights to the profits, capital or reserves of an entity or of a [PE];
(9) ‘controlling interest’ (...)
(10) ‘filing entity’ means one of the following:
(a) the [UPE], when located in a Member State; or
(b) if the [UPE] is not located in a Member State, the entity located in a Member State, that has been appointed by the BEFIT group to [file the BEFIT information return].
(11) ‘acceptable accounting standard in the [EU]’ (...)
(12) ‘financial accounting net income or loss’ (...)
(13) ‘Insurance undertaking’ (...)
(14) ‘Unit-linked/index-linked life insurance’ (...)
(15) ‘economic owner’ (...)
(16) ‘baseline allocation’ means the method for sharing the BEFIT tax base among BEFIT group members (...)
(17) ‘filing authority’ (...)
CHAPTER II - DETERMINATION OF THE PRELIMINARY TAX RESULT
SECTION 1 - GENERAL PROVISIONS
Article 4 - General principles
1. The preliminary tax result of each BEFIT group member shall be determined (...) based on its financial accounting net income or loss as adjusted in accordance with Article 8 to 41 of this Directive.
2. Expenses (...) shall be deductible (...) only to the extent that they are incurred in its direct business interest. [Commentary: It is unclear how this should be interpreted. Perhaps based on accounting standards? How about income?]
Article 5 - Structure of a BEFIT group
1. A BEFIT group shall be formed where two or more companies or [PEs] which fall within the scope of this Directive meet the following conditions:
(a) the company is either the [UPE] or any other company of the group in which the [UPE] holds (...) at least 75% of the ownership rights or [profit rights];
(b) the head office of the [PE] is either the [UPE] or any other member (company or entity) of the group in which the [UPE] holds (...) at least 75% of the ownership rights or [profit rights].
2. [To calculate the 75%.] threshold (...), the ownership rights and [profit rights] shall be calculated by multiplying the interests held, directly and indirectly, at each tier.
Article 6 - Holding period requirements
1. A BEFIT group member shall meet the thresholds referred to in Article 5(1) without interruption, throughout the fiscal year.
2. A company or a [PE] shall become a BEFIT group member on the date that the thresholds referred to in Article 5(1) are reached. (...) [Commentary: This contradicts Paragraph 1, in case the threshold is first met during a fiscal year.] If a company or, as applicable, a [PE] fails to meet the thresholds for [at least 9 months], it shall be treated as if it has never been a BEFIT group member.
A company or a [PE] ceases to be a BEFIT group member on the day that follows the one on which it no longer meets the thresholds referred to in Article 5(1). [Commentary: Again, this contradicts Paragraph 1, in case the threshold is no longer met during a fiscal year.]
Article 7 - Financial accounts as a basis for computing the preliminary tax result
1. The preliminary tax result of a BEFIT group member shall be computed by making the adjustments set out in Articles 8 to 41 to its financial accounting net income or loss for the fiscal year, as determined under a single common acceptable accounting standard in the [EU] before any consolidation adjustments for eliminating intra-BEFIT group transactions.
2. The (...) accounting standard (...) shall be the (...) accounting standard (...) which is used in the preparation of the consolidated financial statements of the [UPE] where the latter is resident for tax purposes in a Member State. Where the [UPE] is not resident for tax purposes in a Member State, the (...) accounting standard (...) shall be the standard in force in the Member State where the filing entity is resident for tax purposes.
3. Where a BEFIT group member is a [PE], its financial accounting net income or loss shall be either:
(a) the net income or loss reflected in its own separate financial accounts, as determined in accordance with paragraphs 1 and 2; or
(b) in the absence of separate financial accounts, the net income or loss that would have been reflected in its separate financial accounts if they had been prepared on a standalone basis and in accordance with the acceptable standard in the Union determined in accordance with paragraphs 1 and 2.
4. By way of derogation from paragraph 1, where a Member State (...) allows groups to prepare (...) financial statements on a jurisdictional basis, the preliminary tax result and the allocation of the BEFIT tax base of the BEFIT group members that are resident (...) in that Member State may also be computed on a jurisdictional basis, provided that the group can identify (...) for each BEFIT group member, the data necessary to calculate such preliminary tax result and post-allocation adjustments in accordance with this Directive.
SECTION 2 - ADJUSTMENTS TO THE FINANCIAL ACCOUNTING NET INCOME OR LOSS
Article 8 - Dividends and other distributions
With the exception of financial assets held for trading (...) and (...) for the benefit of life insurance policyholders (...), the financial accounting net income or loss of a BEFIT group member shall be adjusted to exclude 95% of the amount of (...) distributions received or accrued (...), provided that at the date of distribution, the ownership interest is held by the BEFIT group member for more than one year and this interest carries right to more than 10% of the profits, capital, reserves or voting rights. [Commentary: We would expect "10% or more".]
Article 9 - Gains or losses from the disposition of shares
[The same applies for] the amount of gain or loss arising from the disposition of an ownership interest (...).
Article 10 - Changes in fair value
[The same applies for] the amount of gain or loss arising from changes in the fair value of an ownership interest (...).
Article 11 - Financial assets held for trading
A financial asset or liability shall be treated as being held for trading by a BEFIT group member [if]:
(a) it is acquired or incurred mainly for the purpose of selling it or repurchasing it in the short term; [or]
(b) it is part of a portfolio of identified financial instruments (...) that are managed together and for which there is evidence of a recent actual pattern of short-term profit taking.
2. [Special provision in case a financial asset or liability which is held by a BEFIT group member transitions to become an asset or liability held for trading or vice versa.]
3. [Details on the holding period referred to in Article 9.] [Commentary: The reference should be to Articles 8-10.]
Article 12 - Income or loss of a [PE]
The financial accounting net income or loss of a BEFIT group member shall be adjusted to exclude the amount of income or loss that is attributable to its [PE].
Article 13 - Interest limitation rule
1. A BEFIT group member shall adjust its financial accounting net income or loss to include the amount of exceeding borrowing costs, as referred to in Article 2 of Council Directive (EU) 2016/1164 of 12 July 2016 (...), which is not deductible for tax purposes in accordance with the interest limitation rules laid down in the national corporate tax law of the Member State where it is resident for tax purposes.
2. Paragraph 1 shall not apply to exceeding borrowing costs arising from a transaction between BEFIT group members.
Article 14 - Insurance undertakings
(...)
Article 15 - Shipping activities covered by a tonnage tax regime
(...)
Article 16 - Fines, penalties and illegal payments
(...) include the amount of expenses accrued for payments found illegal (...) as well as fines and penalties (...)
Article 17 - Corporate tax
(...) include (...) any corporate tax, similar taxes on profits and deferred taxes accrued for the fiscal year as well as any amount recorded as current taxes in the financial accounts in relation to (...) Directive (EU) 2022/2523 [(global minimum tax)].
Article 18 - Rollover relief for replacement assets
[exclude qualifying capital gains from replacement assets]
Article 19-41 (fixed, currency exchange gain or loss, Article 48-1 items, depreciation, exceptional decrease in value, stocks and work-in-progress, provisions, bad debts, long term contracts, hedging, entering or leaving a BEFIT group, termination of a group, business reorganisations, disallowance of exempt share dispositions)
CHAPTER III - AGGREGATION OF THE PRELIMINARY TAX RESULTS and ALLOCATION OF THE BEFIT TAX BASE
[Commentary: the Explanatory memorandum states the following about this chapter:]
[Aggregation of the preliminary tax results of all members of the BEFIT group into a single BEFIT tax base at EU level has] several important advantages:
Cross-border loss relief (...), and;
Facilitation of transfer pricing compliance: during the transition period, the outcome of intra-BEFIT group transactions will be a determining factor to how the (...) BEFIT tax base will be allocated to the BEFIT group members. [Commentary: And to determine the preliminary tax base of the BEFIT group member.] [The arm's length principle will apply to intra-BEFIT group transactions,] but (...) if, as a result of their intra-BEFIT group transactions, [the] expenses or income [of BEFIT group members] remain within a limit of less than 10% increase compared to the average of the previous three fiscal years [they will benefit from increased certainty]. [Commentary: Article 45-3 measures the 10% increase/decrease of expenses/income only in relation to intra-BEFIT group transactions.] This system (...) paves the way for (...) a factor-based formula (...) as a permanent way for allocating the BEFIT tax base.]
SECTION 1 - BEFIT TAX BASE
Article 42 - Computation of the BEFIT tax base
1. The preliminary tax results of all BEFIT group members (...) shall be aggregated to obtain a BEFIT tax base.
2. Where the BEFIT tax base in a given year is:
(a) [positive], the profit shall be allocated in accordance with Article 45;
(b) [negative], the loss shall be carried forward (...).
3. [T]he preliminary tax result of each BEFIT group member shall be converted to [EUR] at the exchange rate issued by the European Central Bank as it stood on the last day of the [fiscal year]. [W]here the filing entity is resident (...) in a [non-EUR] Member State (...), the preliminary tax result of each BEFIT group member shall be converted into the currency [of] that Member State.
Article 43 - Withholding taxes and other source taxation
1. [No withholding taxes on intra-BEFIT group transactions unless the beneficial owner of the payment is not a BEFIT group member]
2. Where a withholding tax is applied [it] shall be shared (...) amongst Member States using the allocation method referred to in Article 45.
Article 44 - Tax credits on income taxed at source
1. Where a BEFIT group member derives income that has been taxed in another Member State or in a third country, a tax credit shall be granted (...) and shared amongst the BEFIT group members using the baseline allocation method referred to in Article 45.
2. (...)
3. (...)
SECTION 2 - ALLOCATION OF THE BEFIT TAX BASE
Article 45 - Transition allocation rule [Commentary: Until succeeded by formulary apportionment.]
1. For each fiscal year between 1 July 2028 and 30 June 2035 at the latest (the ‘transition period’), the BEFIT tax base shall be allocated to the BEFIT group members in accordance with the baseline allocation percentage. (...)
2. The baseline allocation percentage for each BEFIT group member [is as follows]: Taxable result of a BEFIT group member Total taxable result of the BEFIT group x 100 Where:
(a) the taxable result of a BEFIT group member shall be the average of the taxable results in the three previous fiscal years. In the first fiscal year in which a BEFIT group is subject to this Directive, those taxable results shall be determined [for the three preceding fiscal years] in accordance with the national corporate tax rules (...). In the second fiscal year (...), those taxable results shall be determined, for the first fiscal year (...), in accordance with Chapter II of this Directive and for the two preceding fiscal years, in accordance with the national rules (...). In the third fiscal year (...), those taxable results shall be determined, for the first two fiscal years (...), in accordance with Chapter II of this Directive and for the fiscal year that immediately precedes, in accordance with the national rules (...). As from the fourth fiscal year (...), those taxable results shall be determined in accordance with Chapter II of this Directive.
(b) the total taxable result of the BEFIT group shall be the [sum] of the average of the taxable results (...) of all BEFIT group members in the three previous fiscal years. For the purpose of this paragraph, a BEFIT group member with a [loss] shall have a baseline allocation percentage set at zero.
3. (...) Member States shall structure their risk assessment framework for the pricing of intra-BEFIT group transactions as follows:
(a) low-risk zone: [expense or income derived] by a BEFIT group member from intra-BEFIT group transactions increase in a fiscal year by less than 10% compared to the average expense or income of the previous three fiscal years from intra-BEFIT group transactions;
(b) high-risk zone: [expense or income derived] by a BEFIT group member from intra-BEFIT group transactions increase in a fiscal year by 10% or more compared to the average expense or income of the previous three fiscal years from intra-BEFIT group transactions.
4. (...)
(a) low-risk zone: the competent authorities of the Member States concerned shall presume that the pricing of intra-BEFIT group transactions of a specific BEFIT group member is consistent with the arm’s length principle; (b) high-risk zone: the competent authorities of the Member States concerned shall presume that the pricing of intra-BEFIT group transactions of a specific BEFIT group member does not comply with the arm’s length principle and the [excess] beyond 10% shall not be recognized [when] computing the baseline allocation percentage of that BEFIT group member. [Commentary: The 10% threshold is very arbitrary. - Why does it only refer to an increase of expense or income? One would expect a mechanism to monitor the arm's length nature of transactions from a BEFIT group member's point of view to look at an increase of expenses and a decrease of income. If BEFIT group member A decides to stop charging BEFIT group member B for its products, the income of A decreases and the expense of B decreases, and - if this were their only inter-BEFIT group transaction - they would both fall in the low risk zone. - If the demand for a distributor's products increases by more than 10%, its purchases of products is likely to increase with more than 10%. This company would be assumed not to operate at arm's length. If the group decides to invoice the same price to the distributor for the increased volume, this company would be assumed to operate at arm's length.] [A] BEFIT group member shall be entitled to provide evidence (...) that the pricing of the relevant intra-BEFIT group transactions is set in accordance with the arm’s length principle. In such case, the full amount of expense from the intra-BEFIT group transactions in question, as evidenced, shall be recognized for the purpose of computing the baseline allocation percentage of that BEFIT group member. [Commentary: "Member States concerned" implies that the presumption applies to all transactions and all counterparties in those transactions of the relevant BEFIT group member. It is unclear what happens if insufficient evidence is provided? - What if the BEFIT group member can only substantiate the arm's length nature of part of the transactions? Is it all or nothing, or does "as evidenced" imply that individual transactions should be analysed? - How should evidence be provided? In a Local File? - Should the Member State of the counterparty apply a corresponding adjustment? This will lead to a circular reference with respect to the 10% threshold.]
5. Notwithstanding Article 13(2), the exceeding borrowing costs as referred to in Article 2 of Council Directive (EU) 2016/1164 which arise from a transaction between BEFIT group members shall not be recognized for the purpose of computing the baseline allocation percentage of the BEFIT group member which incurs such costs.
6. [Recomputation of baseline allocation if the structure of the BEFIT group changes during the transition period due to new members joining or members leaving the group.]
7. [If new companies are created] which qualify as BEFIT group members, the rules for allocating the BEFIT tax base (...) shall not apply to the new BEFIT group members in the first fiscal year. (...) [Commentary: PEs should be added.]
8. If a group becomes subject to the rules of this Directive later than 1 July 2028, (...) the BEFIT tax base shall be allocated to the BEFIT group members over the remaining part of the transition period referred to in paragraph 1.
9. The Commission shall (...) prepare a study on the possible composition and weight of selected formula factors (...) by the end of the third fiscal year during the transition period (...). [T]he Commission (...) may adopt a legislative proposal during the transition period, to amend this Directive by introducing a method for the allocation of the BEFIT tax base using formulary apportionment (...).
10. (...)
Article 46 - Upstream activities
(...)
Article 47 Exception for shipping not covered by a tonnage tax regime, inland waterways transport and air transport
(...)
Article 48 - Items deductible from the allocated part
1. A BEFIT group member shall increase or decrease its allocated part by the following items:
(a) unrelieved losses incurred before becoming subject to the rules of this Directive, in accordance with Article 38;
(b-j).
2. [A] Member State may [also] allow for increasing or decreasing, through additional items, the allocated part of BEFIT group members that are resident for tax purposes or situated in the form of a [PE] in that Member State.
Article 49 - Distribution based tax systems
(...)
CHAPTER IV - Simplified Approach to Transfer Pricing Compliance
[Commentary: the Explanatory Memorandum adds:] This feature of BEFIT (...) is a clear distinction from the Directive on transfer pricing [which] has a broader scope (...). The Directive on transfer pricing (...) endorses the OECD transfer pricing guidelines and constitutes a steppingstone for Member States to agree common approaches to specific transfer pricing themes (...).
Article 50 - Scoping criteria
1. Member States shall subject the following activities, where these are performed through transactions between a BEFIT group member and an associated enterprise outside the BEFIT group, to a simplified approach to transfer pricing compliance:
(a) distribution activity (...) performed through a low-risk distributor (...).
(b) manufacturing activity (...) performed through a contract manufacturer (...).
2. [A] low-risk distributor (...) performs distribution of goods purchased from associated enterprises [and]:
(a) (...) can be reliably priced using a one-sided transfer pricing method, with the distributor being the tested party;
(b) the distributor shall not [own] the intellectual property contained in the products and/or services (...);
(c) the distribution activity shall be the predominant function (...);
(d) the distributor shall bear no or limited risks regarding market, inventory and bad credits.
3. [A] contract manufacturer (...) performs a manufacturing activity under the control of a principal and (...):
(a) [one-sided transfer pricing method]
(b) [no intellectual property]
(c) [predominant function]
(d) [no or limited price, market, inventory, capacity utilization and bad credits risk]
4. Where an associated enterprise is engaged in more than one economic activity, it shall remain within the scope of the simplified approach, provided that any of the following conditions are met:
(a) the economic activities other than distribution or manufacturing can be adequately segregated and separately priced;
(b) the economic activities other than distribution or manufacturing can be considered ancillary and are either immaterial or do not add major value to distribution or manufacturing.
Article 51 - Compliance framework
1. Member States shall structure their risk assessment framework for the activities mentioned in Article 50 in such a way as to consist of three transfer pricing risk zones.
2. The risk zones shall be determined using the interquartile range of the profit performance resulting from the Union public benchmarks referred to in Article 53.
3. The activities mentioned in Article 50 shall be risk assessed as being of low, medium or high risk, depending on how their profit performance in a given year, determined under Article 52, compares to the interquartile range of the most recent set of public benchmarks prepared before the end of that year.
4. Member States shall apply the following risk framework:
Risk zone Profit performance of the tested party relative to the EU profit markers
low above 60TH percentile of the results of the public benchmark
medium below 60TH percentile but above the 40TH percentile of the results of the public
benchmark
high below the 40TH percentile of the results of the public benchmark
5. Member States shall (...) structure their approach to risk compliance in accordance with the following principles:
(a) Low-risk zone: [competent authorities may not take action]
(b) Medium-risk zone: [competent authorities may contact the taxpayer and decide to review]
(c) High-risk zone: [competent authorities may recommend that the taxpayer reviews its transfer pricing policies and may decide to initiate a review or audit]
Article 52 - Measure of the performance
1. Member States shall lay down the appropriate legal framework, so that their competent authorities measure the profitability of the distribution activity (...) using [ROS]
2. Member States shall lay down the appropriate legal framework, so that their competent authorities measure the profitability of the manufacturing activity (...) using [EBIT] relative to total costs as [PLI].
Article 53 - Public Benchmarks
1. The risk zone for the activities referred to in Article 50 shall be determined respectively via public benchmarks for distribution and manufacturing activities.
2. (...)
3. (...)
4. The risk zone shall be determined using the interquartile range of the 5-year average profit performance of independent entities resulting from the public benchmarks.
5. The Commission shall (...) set the search criteria to identify comparables for establishing the appropriate benchmarks for low-risk distribution and contract manufacturing activities. The results of the benchmarks shall be published on the Commission website, for the purpose of allowing taxpayers to determine the risk zone of their activities. The benchmarks shall be updated every 3 years. (...)
CHAPTER V - ADMINISTRATION AND PROCEDURES
SECTION 1 GENERAL PROVISIONS
Article 54 - Creation and termination of the BEFIT group
1. A BEFIT group shall be covered by this Directive for a period of five years and its effect shall automatically be renewed at the end of the fifth year, unless there is a notice of termination (...).
2. Groups that have chosen to be covered by this Directive in accordance with Article 2(7) shall be bound for a period of five years. At the end of the five-year period, the rules shall cease to apply, unless the filing entity notifies the choice to renew (...).
Article 55 - Fiscal year
1. All BEFIT group members shall have the same fiscal year, which shall be a period of 12 months. In the year in which a BEFIT group member joins a BEFIT group, it shall bring its fiscal year in line with the fiscal year of the BEFIT group.
2. [Allocated part of a joining BEFIT group member]
3. [Allocated part of a leaving BEFIT group member]
Article 56 Change of the filing entity
SECTION 2 - BEFIT INFORMATION RETURN
Article 57 - Filing the BEFIT information return
1. The filing entity shall file the BEFIT information return of the BEFIT group with the filing authority, except where the BEFIT group is a domestic group.
2. The BEFIT information return shall be submitted to the filing authority no later than four months after the end of the fiscal year.
3. The BEFIT information return shall comprise the following information:
(a) identification of the filing entity and other BEFIT group members, including their tax identification numbers, if any, and the Member State in which the BEFIT group members are resident (...) or situated [(PE)];
(b) information on the (...) corporate structure of the BEFIT group (...).
(c) the fiscal year (...);
(d) information and computation of the following:
(i) the (...) preliminary tax result of each BEFIT group member;
(ii) the BEFIT tax base;
(iii) the allocated part of each BEFIT group member;
(iv) information about the ‘baseline allocation percentage’, as computed in accordance with Article 45.
4. The filing authority shall transmit the BEFIT information return immediately to the [other] competent authorities (...).
Article 58 Notification of errors in the BEFIT information return
Article 59 Failure to file a BEFIT information return
SECTION 3 - BEFIT TEAM
Article 60 - Establishment of the BEFIT team
1. A BEFIT team shall be convened within one month after filing the BEFIT information return (...).
2. The BEFIT team shall be composed of one or more representatives of each relevant tax administration (...).
3. Information communicated between the members of a BEFIT team, shall be provided by electronic means to the extent possible, through making use of a BEFIT collaborative tool.
4. (...)
Article 61 Role of the BEFIT team in the BEFIT information return
1. The BEFIT team shall examine the completeness and accuracy of the information filled in the BEFIT information return (...), except for the outcome of the computation of the preliminary tax result of each BEFIT group member under point (d)(i) of Article 57(3).
2. The BEFIT team shall endeavour to achieve consensus on the content of the BEFIT information return, within four months of the date when all information required under Article 57 was reported. (...)
3. [Consensus notification to filing entity]
4. [Deemed consensus by simple majority]
5. [Calculation of simple majority]
SECTION 4 - INDIVIDUAL TAX RETURNS AND ASSESSSMENTS
Article 62 - Filing the individual tax returns
1. Each BEFIT group member shall file its individual tax return with the competent authority of the Member State in which that BEFIT group member is resident for tax purposes or situated [(PE)] no later than three months after receipt of the notice from the filing authority.
2. The individual tax return shall comprise information on the following elements:
(a) (...) preliminary tax result (...);
(b) the part allocated (...);
(c) the items that shall adjust the allocated part in accordance with Article 48 (...);
(d) [foreign tax] credits (...).
3. [M]embers of the same BEFIT group which are resident (...) in the same Member State may choose to file one combined individual tax return in that Member State.
Article 63 Notification of errors in the individual tax return
Article 64 Individual tax assessments
SECTION 5 AUDITS
SECTION 6 APPEALS
SECTION 7 - FINAL PROVISIONS
Article 71 - Disclosure of information and documents
1. Information communicated between Member States (...) shall be covered by the obligation of official secrecy (...).
2. (...).
Article 72 Penalties
CHAPTER VI FINAL PROVISIONS
Article 73 - Committee procedure
Article 74 - Exercise of the delegation
Article 75 Informing the European Parliament
Article 76 Data Protection
Article 77 - Review by the Commission of the operation of BEFIT
1. Five years after this Directive starts to apply, the Commission shall examine and evaluate its functioning and report to the European Parliament and the Council to that effect. The report shall, where appropriate, be accompanied by a proposal to amend this Directive.
2-5. (...)
Article 78 - Transposition
1. Member States shall adopt and publish the laws, regulations and administrative provisions necessary to comply with this Directive by 1 January 2028. (...)
2. They shall apply those provisions from 1 July 2028.
3. When Member States adopt those provisions, they shall include a reference to this Directive (...).
4. (...).
Article 79 - Entry into force
This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Article 80 - Addressees
(...)